News | 11.04.19
States Considering Rules for How Advisors Charge Subscription Fees
The North American Securities Administrators Association has been talking with investment advisors who are generating revenue in ways other than charging a fee based on client assets under management (AUM). "Clients, if they're on a monthly fee, must know what they're getting and firms must, in fact, be delivering that service on a monthly basis," said Ohio Securities Commissioner Andrea Seidt. NASAA is developing guidance for investment advisors who are using the subscription model, said Seidt. Regulators are also taking a look at advisors who combine a subscription fee with an AUM charge.
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